Clayton Homes Reports Third Quarter Results.Business Editors KNOXVILLE Knoxville, city (1990 pop. 165,121), seat of Knox co., E Tenn., on the Tennessee River; inc. 1876. A port of entry, it is a trade and shipping center for a farm, bituminous-coal, and marble area. , Tenn.--(BUSINESS WIRE)--April 11, 2001 For the third quarter ending March 31, 2001, Clayton Clayton, city (1990 pop. 13,874), seat of St. Louis co., E central Mo., a suburb of St. Louis; inc. 1919. Developed in the 1960s, it has high-rise office buildings, hotels, and shopping centers; several major firms are headquartered there. Homes, Inc. (NYSE NYSE See: New York Stock Exchange :CMH CMH Center of Military History CMH Commission on Macroeconomics and Health CMH Chief of Military History CMH Children's Memorial Hospital CMH Ceramic Metal Halide (General Electric light source) CMH Congressional Medal of Honor ), reported revenues of $272 million and earnings per share of $0.17. "We are pleased to report net income of $24 million during a challenging industry environment where few companies are profitable, industry shipments are down 42%, and 90 plants have closed," remarked CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) Clayton. "Due to the remaining over-capacity in the industry, operating performance in the fourth quarter will likely be better than this quarter but below last year's fourth quarter." Clayton Homes will host a conference call at 2:00 p.m. eastern today. A simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. and a replay will be available on the Company's website at www.clayton.net in the Investor's section. Clayton Homes, Inc. is a vertically integrated manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected company engaged in manufacturing, retailing, financing, and insuring homes, and in operating manufactured housing communities.
SUMMARY RESULTS
(in thousands except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
2001 2000 Change 2001 2000 Change
---- ---- ----- ---- ---- ------
Revenues $272,070 $306,981 -11% $857,730 $953,437 -10%
Earnings before
taxes 37,752 56,993 -34% 127,299 169,248 -25%
Net Income $ 23,752 $ 35,893 -34% $ 80,199 $106,648 -25%
Average shares
outstanding
(diluted) 138,722 139,121 --- 138,179 140,395 -2%
Earnings per
share (diluted) $ .17 $ .26 -35% $ .58 $ .76 -24%
Certain statements may be considered forward looking and involve certain risks and uncertainties that may cause actual results to differ materially from expectations.
EARNINGS
CLAYTON HOMES, INC. 6 Mos. ENDED Dec. 31 3 Mos. ENDED Mar. 31
2000 1999 % +/- 2001 2000 % +/-
(Unaudited - in $ thousands except per share data)
SALES:
Manufacturing 248,624 312,175 -20.4% 110,739 143,031 -22.6%
Less
Intercompany (133,113)(168,156) -20.8% (64,453) (79,609) -19.0%
Net Manufacturing 115,511 144,019 -19.8% 46,286 63,422 -27.0%
Retail - New 277,173 308,789 -10.2% 125,765 139,837 -10.1%
- Used 23,503 28,518 -17.6% 10,964 13,709 -20.0%
Total Retail 300,676 337,307 -10.9% 136,729 153,546 -11.0%
Communities - New 14,062 12,923 8.8% 6,320 9,253 -31.7%
- Used 3,797 5,957 -36.3% 1,836 3,157 -41.8%
Total Communities 17,859 18,880 -5.4% 8,156 12,410 -34.3%
Sales 434,046 500,206 -13.2% 191,171 229,378 -16.7%
Financial Services 114,738 111,918 2.5% 63,086 59,588 5.9%
Rental and Other
Income 36,876 34,332 7.4% 17,813 18,015 -1.1%
OPERATING REVENUE 585,660 646,456 -9.4% 272,070 306,981 -11.4%
Cost Of Sales 289,998 333,042 -12.9% 127,037 152,647 -16.8%
Selling, General
& Administrative 187,092 192,626 -2.9% 93,547 92,164 1.5%
Financial Services
Interest 394 560 -29.6% 166 245 -32.2%
Provision for
Credit Losses 17,300 8,400 106.0% 12,700 5,200 144.2%
OPERATING EXPENSES 494,784 534,628 -7.5% 233,450 250,256 -6.7%
OPERATING INCOME 90,876 111,828 -18.7% 38,620 56,725 -31.9%
Interest Income
(expense),
net/other (1,329) 427 -410.8% (868) 268 -423.8%
Income Before
Income Taxes 89,547 112,255 -20.2% 37,752 56,993 -33.8%
Tax Rate 37.0% 37.0% 37.1% 37.0%
Provision for
Income Taxes 33,100 41,500 -20.2% 14,000 21,100 -33.6%
NET INCOME 56,447 70,755 -20.2% 23,752 35,893 -33.8%
EARNINGS PER SHARE
Basic $ 0.41 $ 0.50 -18.0% $ 0.17 $ 0.26 -34.6%
Diluted $ 0.41 $ 0.50 -18.0% $ 0.17 $ 0.26 -34.6%
AVERAGE SHARES
OUTSTANDING
Basic 137,575 140,523 -2.1% 137,767 138,839 -0.8%
Diluted 137,944 140,886 -2.1% 138,722 139,121 -0.3%
9 Mos. ENDED Mar. 31
2001 2000 % +/-
(Unaudited - in $ thousands except per share data)
SALES:
Manufacturing 359,363 455,206 -21.1%
Less
Intercompany (197,566)(247,765) -20.3%
Net Manufacturing 161,797 207,441 -22.0%
Retail - New 402,938 448,626 -10.2%
- Used 34,467 42,227 -18.4%
Total Retail 437,405 490,853 -10.9%
Communities - New 20,382 22,176 -8.1%
- Used 5,633 9,114 -38.2%
Total Communities 26,015 31,290 -16.9%
Sales 625,217 729,584 -14.3%
Financial Services 177,824 171,506 3.7%
Rental and Other
Income 54,689 52,347 4.5%
OPERATING REVENUE 857,730 953,437 -10.0%
Cost Of Sales 417,035 485,689 -14.1%
Selling, General
& Administrative 280,639 284,790 -1.5%
Financial Services
Interest 560 805 -30.4%
Provision for
Credit Losses 30,000 13,600 120.6%
OPERATING EXPENSES 728,234 784,884 -7.2%
OPERATING INCOME 129,496 168,553 -23.2%
Interest Income
(expense),
net/other (2,197) 695 -415.9%
Income Before
Income Taxes 127,299 169,248 -24.8%
Tax Rate 37.0% 37.0%
Provision for
Income Taxes 47,100 62,600 -24.8%
NET INCOME 80,199 106,648 -24.8%
EARNINGS PER SHARE
Basic $ 0.58 $ 0.76 -23.7%
Diluted $ 0.58 $ 0.76 -23.7%
AVERAGE SHARES
OUTSTANDING
Basic 137,638 139,966 -1.7%
Diluted 138,179 140,395 -1.6%
CONDENSED CONSOLIDATED BALANCE SHEETS
(in $ thousands) (unaudited) (audited)
March 31, June 30,
2001 2000
Assets
Cash & cash equivalents 197,209 43,912
Receivables, net 596,710 673,067
Inventories 184,373 222,431
Property, plant, & equipment, net 308,461 305,479
Other assets 254,135 261,489
TOTAL ASSETS 1,540,888 1,506,378
Liabilities & Shareholders' Equity
Accounts payable & accrued liabilities 82,998 122,760
Debt obligations 96,837 99,216
Other liabilities 246,759 248,027
Shareholders' equity 1,114,294 1,036,375
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 1,540,888 1,506,378
OPERATING DATA
CLAYTON HOMES, INC. 6 Mos. ENDED Dec. 31 3 Mos. ENDED Mar. 31
2000 1999 % +/- 2001 2000 % +/-
UNIT SALES:
MANUFACTURING GROUP
Single-section 4,929 6,574 -25.0% 2,103 3,265 -35.6%
Multi-section 5,134 6,562 -21.8% 2,362 2,888 -18.2%
Total shipped 10,063 13,136 -23.4% 4,465 6,153 -27.4%
Less Intercompany (5,291) (6,839) -22.6% (2,554) (3,324) -23.2%
NET MANUFACTURING 4,772 6,297 -24.2% 1,911 2,829 -32.4%
RETAIL GROUP
New Single-
section 3,069 3,257 -5.8% 1,514 1,761 -14.0%
New Multi-
section 3,233 3,682 -12.2% 1,413 1,532 -7.8%
TOTAL NEW 6,302 6,939 -9.2% 2,927 3,293 -11.1%
USED 1,770 1,998 -11.4% 881 978 -9.9%
TOTAL RETAIL 8,072 8,937 -9.7% 3,808 4,271 -10.8%
COMMUNITIES GROUP
New 361 334 8.1% 167 251 -33.5%
Used 176 224 -21.4% 74 126 -41.3%
TOTAL COMMUNITIES 537 558 -3.8% 241 377 -36.1%
TOTAL HOMES SOLD 13,381 15,792 -15.3% 5,960 7,477 -20.3%
NUMBER (actual):
PLANTS 20 19 5.3% 20 19 5.3%
RETAILERS -
Independent 686 668 2.7% 690 674 2.4%
RETAILERS -
Company-owned 310 310 307 312 -1.6%
COMMUNITIES 77 76 1.3% 77 76 1.3%
Sites owned 20,435 19,979 2.3% 20,437 19,970 2.3%
Sites rented 15,303 14,579 5.0% 15,553 14,989 3.8%
Percent
occupied 74.9% 73.0% 76.1% 75.1%
AVERAGES
NUMBER (average):
PLANTS 20 19 5.3% 20 19 5.3%
RETAILERS -
Independent 697 670 4.0% 688 671 2.5%
RETAILERS -
Company-owned 314 308 1.9% 309 311 -0.8%
COMMUNITIES 77 76 1.3% 77 76 1.3%
Sites owned 20,302 19,844 2.3% 20,436 19,975 2.3%
Sites rented 15,240 14,510 5.0% 15,428 14,784 4.4%
Percent
occupied 75.1% 73.1% 75.5% 74.0%
AVERAGE UNIT PRICE:
WHOLESALE -
ALL $24,707 $23,765 4.0% $24,802 $ 23,246 6.7%
WHOLESALE -
INDEPENDENT
ONLY 24,206 22,871 5.8% 24,221 22,418 8.0%
RETAIL - New 43,982 44,501 -1.2% 42,967 42,465 1.2%
RETAIL - Used 13,279 14,273 -7.0% 12,445 14,018 -11.2%
COMMUNITIES -
New 38,953 38,693 0.7% 37,845 36,865 2.7%
TOTAL RETAIL
AND
COMMUNITIES $37,000 $ 37,513 -1.4% $35,783 $ 35,705 0.2%
SALES $(thousands)
PER-
PLANT $12,431 $ 16,430 -24.3% $ 5,537 $ 7,528 -26.4%
INDEPENDENT
RETAILER 166 215 -22.9% 67 95 -28.8%
COMPANY-OWNED
SALES CENTER 958 1,095 -12.6% 443 494 -10.2%
COMMUNITY $ 233 $ 250 -6.6% $ 106 $ 163 -35.1%
TOTAL HOMES SOLD
BY COMPANY-OWNED 25.7 29.0 -11.4% 12.3 13.7 -10.1%
NEW FLOORS SOLD
BY COMPANY-OWNED 30.4 34.5 -11.9% 14.1 15.5 -9.3%
ORDER BACKLOGS
(thousands) $ 9,100 $ 13,600 -33.1% $21,300 $ 12,400 71.8%
PAST DUE
Originated 2.93% 2.47% 2.10% 1.65%
All (includes
purchased
loans) 3.62% 3.42% 2.53% 2.36%
9 Mos. ENDED Mar. 31
2001 2000 % +/-
UNIT SALES:
MANUFACTURING GROUP
Single-section 7,032 9,839 -28.5%
Multi-section 7,496 9,450 -20.7%
Total shipped 14,528 19,289 -24.7%
Less Intercompany (7,845) (10,163) -22.8%
NET MANUFACTURING 6,683 9,126 -26.8%
RETAIL GROUP
New Single-
section 4,583 5,018 -8.7%
New Multi-
section 4,646 5,214 -10.9%
TOTAL NEW 9,229 10,232 -9.8%
USED 2,651 2,976 -10.9%
TOTAL RETAIL 11,880 13,208 -10.1%
COMMUNITIES GROUP
New 528 585 -9.7%
Used 250 350 -28.6%
TOTAL COMMUNITIES 778 935 -16.8%
TOTAL HOMES SOLD 19,341 23,269 -16.9%
NUMBER (actual):
PLANTS
RETAILERS -
Independent
RETAILERS -
Company-owned
COMMUNITIES
Sites owned
Sites rented
Percent
occupied
AVERAGES
NUMBER (average):
PLANTS 20 19 5.3%
RETAILERS -
Independent 699 673 3.9%
RETAILERS -
Company-owned 313 309 1.1%
COMMUNITIES 77 76 1.3%
Sites owned 20,303 19,839 2.3%
Sites rented 15,365 14,715 4.4%
Percent
occupied 75.7% 74.2%
AVERAGE UNIT PRICE:
WHOLESALE -
ALL $ 24,736 $ 23,599 4.8%
WHOLESALE -
INDEPENDENT
ONLY 24,210 22,731 6.5%
RETAIL - New 43,660 43,845 -0.4%
RETAIL - Used 13,001 14,189 -8.4%
COMMUNITIES -
New 38,602 37,907 1.8%
TOTAL RETAIL
AND
COMMUNITIES $ 36,611 $ 36,919 -0.8%
SALES $(thousands)
PER-
PLANT $ 17,968 $ 23,958 -25.0%
INDEPENDENT
RETAILER 232 308 -24.9%
COMPANY-OWNED
SALES CENTER 1,400 1,589 -11.9%
COMMUNITY $ 340 $ 414 -17.9%
TOTAL HOMES SOLD
BY COMPANY-OWNED 38.0 42.7 -11.1%
NEW FLOORS SOLD
BY COMPANY-OWNED 44.4 50.0 -11.2%
ORDER BACKLOGS
(thousands)
PAST DUE
Originated
All (includes
purchased
loans)
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